cap raising, finance, dilution & drilling

Looks like a good result overall with progress to fund the drilling program and lots of action for the next 18 months. The financier gets a great deal with the chance to convert their loan into shares at 2.7c - a very handy sweetener. If I read it right total fiance is $5m of new shares rights issue at 2c each. Then potentially 2 tranches of finance, $5m each convertible at 2.7c or 30% discount to market at the time. Overall looks like a fair few new shares might create an overhang for some time and also a bit of dilution. However, that's still much better than no news and no drilling IMO.

No doubt some posters will be upset by the issue of new shares. That's just a normal part of small cap activity.